| June 2
June 2 Brand licensor Marquee Brands LLC is
leading a consortium that is preparing a bid for BCBG Max Azria
Group LLC, which would allow the U.S. fashion house to exit
bankruptcy with a footprint of 15 to 20 stores, people familiar
with the matter said.
The move could spare BCBG the fate of other bankrupt
retailers who have completely gone out of business and sold
their brands, such as The Limited Stores, American Apparel and
Marquee has partnered with Global Brands Group Holding
Limited, a spin-off of global exporter Li & Fung Ltd
, which already has a licensing agreement for some of
BCBG's brands, the sources said.
The consortium plans to make a "stalking-horse" bid for BCBG
that would set the floor for any other proposals in a bankruptcy
auction for the retailer to be held as soon as this month, the
Liquidators Hilco Global and Gordon Brothers are also
members of the consortium, the sources said.
A successful starting bid for BCBG must total at least $150
million, one of the sources said, and a U.S. bankruptcy court
judge must approve the final sale.
The sources asked not to be identified because the
deliberations are confidential. BCBG declined to comment.
Marquee, Global Brands, Gordon Brothers and Hilco did not
immediately respond to requests for comment.
Other potential bidders include buyout firm Sycamore
Partners and brand licensor Bluestar Alliance LLC, the sources
said. Sycamore Partners declined to comment. Bluestar did not
immediately return a request for comment.
BCBG, which is owned by investment firm Guggenheim Partners,
filed for bankruptcy in March after it fell behind in rent
payments and struggled with a debt load of about $485
BCBG had scheduled a bankruptcy auction for last month, but
delayed it to give bidders more time to finalize their offers
for the high-end retailer, a favorite of celebrities including
Selena Gomez and Drew Barrymore.
Marquee owns British menswear brand Ben Sherman, surf line
Body Glove and Bruno Magli, an Italian fashion line.
Global Brands in April sold a majority stake of The Frye
Company brand, known for its cowboy boots, to brand licensor
Authentic Brands Group for $100 million. Global Brands continues
to operate Frye's retail stores and e-commerce.
(Reporting by Jessica DiNapoli in New York; Editing by Andrew